Paytm stock up 2% on strong operating performance in Sept

The financial services platform Paytm has recorded the loan disbursal at an annualised run rate (ARR) of ₹34,000 crore in September, thus registering a growth of 17% compared to a month-ago period. The company’s ARR for the month of August stood at ₹29,000 crore. Between the July and August this year, Paytm distributed six million loans worth ₹4,517 crore. 

Following this, the shares of One97 Communications, the parent company of Paytm, surged as much as 2.12% to hit an intraday high of ₹720. According to the regulatory filing by One97 Communications, the number of loans disbursed grew threefold by 224% on a year-on-year (y-o-y) basis to 9.2 million in the September quarter this year. The value of loans disbursed witnessed a 482% y-o-y growth to ₹7,313 crore, which is six times more compared to ₹1,257 crore in the same period last year. 

“Our loan distribution business (in partnership with top lenders) continues to witness accelerated growth with disbursements through our platform now at an annualised run rate of ₹34,000 crore in the month of September,” the financial services platform said. 

Meanwhile, the company’s monthly transaction user (MTU) was up 39% to ₹7.97 crore on a y-o-y basis for the quarter-ended September. “The total merchant GMV processed through our platform for the quarter ended September 2022 aggregated to Rs 3.18 lakh crore ($39 billion), marking a y-o-y growth of 63%,” Paytm said. 

Paytm, which saw one of the worst-performing initial public offerings (IPO) in the past year, has wiped off 68% of investors' wealth since listing. The stock made its market debut in November 2021 at an issue price of ₹2,150 and successfully raised ₹18,300 crore. The stock hit its all-time high of ₹1,961.05 on its listing day on November 18, 2021, while it touched a record low of ₹511 on April 5, 2022.

The development comes at a time when the financial services platform has been witnessing heavy scrutiny from the enforcement directorate (ED) over alleged irregularities in instant app-based loans run by companies owned by Chinese nationals. The company has refuted any link with the merchants that are under the ED scanner.